Start your own Petrol Pump Business

To open a petrol pump in rural areas, the applicant needs to have funding of minimum Rs. 15 – Rs. 20 lakh. Whereas, for opening petrol pump in urban areas the investment amount can go up to Rs. 20 – Rs. 25 (if the land is self-owned). Besides cash and jewelry, applicants can use the below-mentioned types of funds for opening a petrol pump:

Note: Only 60% of value shall be considered for mutual funds, bonds, and shares.

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Applicant must have land under his/her own name or areas where land can be taken on lease for a longer tenure, as per the notification. There are two types of retail outlets that can be opened as per the location that is as follows:

i) Regular Retails Outlets: On National and State highways; Urban and Semi-urban areas

ii) Rural Retail Outlets: Land in rural areas but not on national highways

Ideally, an area of 800 sq. meters – 1200 sq. meters is suitable for opening a petrol pump.

License Fees

1. 16/KL for high-speed diesel for ‘B’/’DC’ retail outlet’s site and Rs. 18/KL for motor spirit
2. 41/KL for high-speed diesel for ‘A’/’CC’ retail outlet site and Rs. 48/KL for motor spirit
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Application Fees

The applicant is required to deposit an application fee of Rs. 1000 for regular retail outlets and Rs. 100 for rural retail outlets. SC/ST/OBC category people are offered a 50% concession on the application fees.

Fixed Fees

If an applicant owns the land for the same purpose and in the respective area then he/she is required to pay Rs. 15 lakh for regular retail outlets and Rs. 5 lakh for rural retail outlets. For a company-owned dealership, the applicant needs to pay fees of Rs. 10 lakh for the rural sites and Rs. 30 lakh for a regular site.

Note: The application, fixed and license fees are non-refundable.

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Petrol pumps’ licenses and franchises are required to be obtained from any one of the public and private sector Oil Marketing Companies (OMCs). As per the advertisements from the OMCs, opportunities shall be generated to open petrol pumps in 2023. The process involved in starting a petrol pump business is not known by many people; therefore let’s discuss some of the important information to open a petrol pump in India.

Leading Oil Marketing Companies (OMCs) publish advertisements in the newspaper or online related to their plans of setting up a number of petrol pumps in various cities and locations of the country. Applicants can apply online by visiting the OMC’s official website for opening a dealership in their desired location or area or can write in at the mentioned address published in the advertisement.

If there are lots of applicants applying for the same area or location then OMCs announce the names of winners via a lottery system, lots, or bidding process.

To open a petrol pump, an applicant needs to obtain certain certificates and permissions in order to run his/her dealership without any hassle and tension. A few of these include:

The location of a petrol pump is the key aspect in the success or failure of a business. Petrol pumps should be preferably set up on busy national or state highways, residential areas, popular markets, and alongside roads with higher traffic. Post obtaining the license, the applicant needs to install a petrol pump and oil bunkers, according to the OMC’s specifications and guidelines.